KARACHI, May 2: Cotton market on Monday lacked normal trading interest as spinners and mills remained busy in working out bids against the latest TCP tender for sale of 60,000 bales. After having successfully sold about 60,000 bales at a competitive price in its maiden auction, the TCP has floated its second tender for the identical quantity and the last date is May 7, cotton analysts said.
Although some of the ginners still hold an unsold stock of 0.2m bales, including those of some fine lots, the trading interest has been shifted to the TCP where regular weekly auctions may be held to dispose of 1.6m bales, they said. Unlike the previous practice the right to fix the benchmark price for various grades of lint for sale, according to press reports, has been delegated to a cabinet committee.
Floor brokers said spinners and mills that were operating on daily supply basis were hard-pressed as they were not in a position to take part in the TCP auctions or meet their daily needs from the ready market in the absence of the sellers. But some others said as the major portion of the unsold stock was lying in the southern Punjab godowns, some of them were meeting their daily demand from there on Karachi delivery basis.
There are also unconfirmed reports of inter-mill deals both on ready and forward basis. Some of the leading spinner groups who had purchased substantial quantity of lint earlier in the season around Rs2,100 per maund are also sellers at Rs2,300 to Rs2,350.
Meanwhile, some of the mills are awaiting the final crop figure due during the next couple of sessions will give a fair idea of unsold stock and its likely impact on the prevailing price, dealers said.
Official spot rates were, therefore, firmly held at the last close, although some of the inferior lots were sold below them.
Ready off-take was light as till late in the evening about 400 bales from Nawabshah changed hands at Rs2,175.
